Why don't your board contact the sponsor through your management to request that the seat on the board be given up for the explanation provided below: deadlock during decision-making. Alternatively, invite the sponsor to participate for the same reason.

Unfortunately, if the sponsor's number of shares, if voted in one block for one individual, is able to retain the seat, then there is not much to be done except keep asking the sponsor to give up the seat.

In most cases, the sponsor may retain the seat to have access to financials. In many proprietary leases, boards cannot make an independent decision to assess or increase the maintenance if the sponsor still holds a certain percent of shares in the corporation. This is to protect the sponsor's own operating budgets from unforseen major incrases, specially when the sponsor may have a large number of apartments occupied with rent controlled, non-eviction tenants.

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